Rated as the fourth largest bank in the United States, the roots of Fortune 500 company Citigroup go all the way back in 1812. It can boast becoming the country’s largest bank by 1895 and was originally known as City Bank of New York. Before its merger with the insurance company, Travelers Group, Citigroup was called Citicorp.
As the first American bank to open an overseas branch, it can now boast doing business in over 160 countries around the world. Citigroup Inc. is credited with being among the first banks to use ATMs, credit, and debit cards. They have also shown innovation in the areas of adding interest on customer’s savings accounts, credit history based personal loans, and check writing services.
Citigroup was among those offered government bailouts during the recent global recession and they did suffer substantial loses by the time the recession reached its peak in 2008. They also suffered from the ill-fated sub-prime mortgage collapse resulting in the loss of a huge number of jobs within the group. To the company’s credit, they recovered very quickly and had managed to repay the government within two years.
- From credit cards and asset management to treasury services on behalf of large organisations and securities, Citigroup has a clear and concise focus on its future.
- Learning from the lessons of the past, the cooperation has been working in conjunction with the Federal Reserve to take measures against any future financial issues. Through partnering moves with the online payment giant PayPal and Costco, the group has further extended their reach.
- Despite the rumours of additional regulations being applied to large banks and financial institutions, there is no physical evidence of them yet. In contrast to their sustained losses of the past, Citigroup has recently seen huge profits. There is little doubt however that any rises in interest rates could impact negatively on such companies.
- Along with many other financial institutions, the poor management record of the 2008 crisis is still fresh in peoples’ minds and wallets. That said, industry pundits and traders continue to release positive reports. Efforts to implement efficiency and reduced overheads across the group are likely to influence the next balance sheet. There is also every possibility that Citigroup will continue to grow.
When dealing in asset trading with a company such as Citigroup Inc., traders should employ state-of-the-art technology and educational tools to ensure the best-informed outcomes.